The impact of social and environmental information on managers’ decisions: Experimental evidence from Indonesia
Abstract
Purpose
The purpose of this paper is to examine whether managers consider social and environmental information in evaluating projects.
Design/methodology/approach
Built on the stakeholder theory, this study hypothesises that managers consider social and environmental information in evaluating their projects. To test the hypotheses, this study employs experimental design.
Findings
The authors find evidence that managers consider social and environmental information in evaluating their projects.
Research limitations/implications
This study finds that social and environmental information is relevant for managerial decision making, particularly in project evaluation.
Practical implications
Social and environmental information is considered relevant for project evaluation decision. Hence, managers should be provided those information.
Originality/value
To the best of the knowledge, this is the first accounting study which examines the effect of social and environmental information on managers’ decisions, particularly in the Asian context using experimental approach. Previous studies only examined the effect social and environmental information on external stakeholders, such as investors.
Keywords
Acknowledgements
The authors thanks go to participants of Asian Pacific Conference on International Accounting Issues 2013, as well as two anonymous reviewers of Asian Review of Accounting, for their helpful comments.
Citation
Madein, A. and Sholihin, M. (2015), "The impact of social and environmental information on managers’ decisions: Experimental evidence from Indonesia", Asian Review of Accounting, Vol. 23 No. 2, pp. 156-169. https://doi.org/10.1108/ARA-11-2013-0074
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited